McKinsey & Company: Deploying a two-speed architecture at scale

How can companies determine which technologies and processes to fast-track and which to leave alone? They need to identify their desired digital business capabilities and the role technology plays in supporting them.Today’s companies need to be able to roll out digital products and services quickly to address customers’ ever-evolving needs. They need flexible technology systems and business processes to do that and to create lasting competitive advantage. For the past several years, many companies have been experimenting with two-speed enterprise architectures to achieve these goals. Under a two-speed model, the processes, software, and other differentiating functions or capabilities that support the customer experience are refreshed quickly and frequently. The capabilities that support transactional back-end functions, meanwhile, are updated more methodically to ensure system stability and reliability.1Companies can reap important benefits from building an enterprise architecture that is simultaneously fast and slow. Such an approach can prompt business and IT leaders to look beyond technology concerns and consider the range of process and governance factors associated with managing enterprise architecture. It can ensure that varying system requirements and desired rates of change in different business units and business functions are addressed appropriately.In many cases, companies have taken a technology-first approach to deploying two-speed enterprise architecture, realizing small-scale successes along the way. The impact of the two-speed approach increases significantly, however, when companies put capabilities first. Indeed, we believe business capabilities must be the central factor for determining which parts of the enterprise architecture—that is, which technologies, working groups, and processes—should be on a fast track and which should remain steady state. IT and business leaders must come together to identify the digital business capabilities desired and how best to support them.Understanding

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Published by Fred Zimny

A management executive for over 25 years. Successfully managed transition programs and front office operations within numerous Dutch companies.
Into service design, service management and service innovation.
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